GEORGE NEWS - Several buyers of flats in the collapsed Neo Victoria building have confirmed to George Herald that their deposits have been refunded, to their utter relief.
This follows an article in the newspaper on 15 August highlighting a buyer's concern about her deposit. She had not been able to obtain any clarity from the conveyancing attorneys, Miltons Matsemela Oosthuisen, since the collapse on 6 May.
The conveyancer, who is acting on behalf of the developer, Neo Victoria Developments, also did not respond to the newspaper's queries in this regard.
However, a few days after the article appeared, the complainant let the newspaper know that she had received a letter from the conveyancer confirming that her deposit would be refunded.
The conveyancer's letter stated, though, that the purchase contracts would not be cancelled until negotiations between the developer and their insurer and building contractor were concluded.
There was therefore uncertainty as to whether buyers could be legally required to honour their contracts. More buyers contacted the newspaper with this concern, but the conveyancer still did not respond to our queries.
A property specialist from Pretoria, who was representing a George buyer who had paid deposits on two flats, at the time said if enough buyers could be garnered, they would start a class arbitration. That proved to be unnecessary. On Friday 23 August, a buyer informed the newspaper that their deposits had been refunded.
However, she said no further information has been forthcoming regarding the cancelling of the purchase contracts.
"But I have spoken to an attorney who says that once the deposits have been refunded, there is little the developer can do to hold the buyers to their contracts, given the circumstances. I have to admit, the developer never acted greedily because in terms of the contract, they could have asked for additional payments when the building was one-third completed, which never happened."
• The conveyancer yesterday responded via e-mail, referring the newspaper to the developer's attorney, Ryan du Preez at Tiefenthaler Attorneys. An enquiry was sent to him and feedback is being awaited.
Read previous articles:
Buyers of Neo Victoria flats getting deposits back
Three directors of Neo Victoria Developments resign
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